Lari MP released on Sh5m bond after denying Sh27m NG-CDF fraud charges

Lari MP Jonah Mburu and his trading company have each been granted a cash bail of Sh2 million or a bond of Sh5 million after denying criminal charges involving embezzlement of Sh27 million in public funds.

The first term MP was charged alongside his three officials of the National Government Constituency Development Fund (NG-CDF) and two businesspersons.

They faced 19 counts related to unlawful acquisition of public property, conflict of interest, abuse of office, dealing with suspect property, failure to comply with procurement laws and conspiracy to commit an economic crime.

While granting them varied cash bails, Milimani Chief Magistrate Douglas Ogoti barred the MP and the NG-CDF officials from accessing the CDF offices pending hearing and determination of the graft case.

The officials are Mr Peter Mugo (Lari CDF chairman), Francis Gachoka (CDF clerk) and Ayaan Muhadhi (funds accounts manager and accounting officer).

Other accused persons include Mr Paul Nyanjui and Grace Muthoni and a host of trading companies.

The court directed all the accused persons to surrender their travel documents so they do not leave the country.

“Unlike other crimes in the penal code where only one or two persons get affected, the economic crimes involve loss of public funds and affect the welfare of a community,” said the magistrate.

The offences

The MP and his trading company known as Pambazuko Distributors Limited faced separate counts of conflict of interest and unlawful acquisition of public property.

Court documents indicated that the legislator’s company received Sh2 million from Oshoann General Merchants and Oshland Greens Ventures following a contract the two companies had with the Lari CDF. The offence was committed on September 1, 2018 in Kiambu County.

The court heard that companies associated with the CDF officials received tenders which were not in compliance to the provisions of the Public Procurement Asset Disposal Act, 2015.

Among the companies that got tenders were Kimondo and Sons General Suppliers which is owned by Mr Gachoka, the CDF clerk.

Other companies, Claymug General Suppliers, Kienjeku Textiles and Uniforms, Rumuli Ltd and Ndemeki Ltd, associated with the CDF chairman Peter Mugo, also did business with the Lari CDF.

The accused were granted varying cash bails depending on the number of counts each faced and the benefits each is alleged to have accrued in the fraud.

For instance, the MP and his trading company were given a bond of Sh5 million each or a cash bail of Sh2 million each, while Mr Muhadhi was granted a cash bail of Sh500,000 or bond of Sh1.5 million.

The CDF chairman, Mr Mugo, and two trading companies associated with him - Rumuli Limited and Ndemeki Limited - were granted a cash bail of Sh5 million each or Sh10 million bond each.

Mr Gachoka, the CDF clerk, was given a cash bail of Sh2 million or a bond of Sh5 million while businessman Paul Nyanjui got a Sh1.5 million cash bail or a Sh3 million bond.

Businesswoman Grace Muthoni was granted a cashbail of Sh100,000 or a bond of Sh500,000.